US President Donald Trump has signalled that his administration may impose fresh tariffs on Indian rice imports, after American farmers alleged that countries like India are dumping low-priced subsidised rice into the US market, hurting domestic producers. Speaking at a White House roundtable with farmers, Trump questioned why India was allowed to continue exporting cheap rice into the US and promised to “take care” of the issue soon.
Trump Questions India: ‘Why Are They Allowed to Do That?’
During the meeting, rice farmers raised complaints about falling domestic prices due to cheaper imports. Responding sharply, Trump said countries accused of dumping would face trade consequences.
“Why is India allowed to do that? They have to pay tariffs. Do they have an exemption on rice?” Trump asked Treasury Secretary Scott Bessent, before adding, “They should not be dumping. They cannot do that.”
#WATCH | US President Donald Trump asks the United States Secretary of the Treasury, Scott Bessent, “Why is India allowed to do that (“dumping rice into the US”)? They have to pay tariffs. Do they have an exemption on rice?”
United States Secretary of the Treasury, Scott Bessent… pic.twitter.com/75tKFYt37G
— ANI (@ANI) December 8, 2025
Farmers at the table accused India, Thailand and China of unfair competition. Meryl Kennedy, CEO of Louisiana-based Kennedy Rice Mill, said that US rice producers in the South are “really struggling.”
Trump instructed officials to list countries allegedly responsible and asserted, “We’re going to take care of it quickly.”
Fresh Tariffs Likely on Indian Rice and Canadian Fertiliser
At the roundtable, where Trump announced a $12 billion bailout package for struggling US farmers, he also hinted at possible penalties on Canadian fertiliser imports, saying they could face “very severe tariffs” if prices undercut American production.
“A lot of it comes from Canada… We’ll put very severe tariffs on that if we have to,” Trump said.
The move could further strain already tense trade talks between the US, India and Canada.
Trade Tensions Rising as Negotiations Stall
Diplomatic sources say negotiators have made little progress on long-term trade deals. A senior US Trade Representative delegation, led by Deputy USTR Rick Switzer, will meet Indian officials in New Delhi on December 10–11 to resume discussions. India hopes to finalise the first phase of its Bilateral Trade Agreement by year-end, according to Commerce Secretary Rajesh Agarwal.
In August, Trump imposed 50% tariffs on several Indian goods, citing trade barriers and India’s continued imports of Russian oil.
Farmers’ Pressure and Inflation Concerns
According to Bloomberg, Trump is under pressure to manage rising inflation and protect agricultural jobs key political concerns ahead of next year’s elections. Though farmers are traditionally strong supporters of Trump, they say they are battling heavy losses from international competition and high production costs.
However, farmers warn that if new tariffs on fertiliser are imposed, they could face even higher expenses, especially since Canada is the largest supplier of potash, a key fertiliser ingredient.
With talks ongoing and tariff threats intensifying, trade tensions between Washington and New Delhi could escalate. If Trump follows through, it may significantly impact India’s agricultural export sector, particularly the country’s massive rice market, which is one of the world’s largest.
Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
